Iress unveils improved remuneration structure following shareholder criticism

iress remuneration Marcus Price fintech

5 May 2023
| By Laura Dew |
image
image
expand image

Iress has outlined how it will move to a performance-based remuneration model following feedback that its previous structure was not aligned with shareholder returns.

In an address to its annual general meeting, Iress’ chair, Roger Sharp, said there had been feedback from shareholders on problems with its remuneration. 

In 2021, when he took over the role, he said, shareholders had raised concerns that its remuneration model was not closely aligned enough with shareholder outcomes.

“We are spending a lot of time thinking about how we link the way we remunerate people to the new strategy. We have engaged an external consultant to support us with this activity, which is now approaching completion. It will result in the introduction of a new reward framework during calendar 2023 that will align Iress with market norms.”

This would see two major changes, which would be open to shareholder feedback ahead of the next extraordinary general meeting (EGM).

These were: 

  • Replacing the existing equity rights program with an alternative short-term incentive plan (thereby replacing an element of fixed remuneration with a performance-based incentive); and
  • Replacing the existing long-term incentive plan with a new plan that reflects our new operating structure and strategy.

Iress’ chief executive, Marcus Price, added: “We will be replacing our remuneration framework with a performance-based model aligned to business unit performance as well as shareholder returns. We will seek feedback and approval from shareholders on this renewed approach”.

Shares in Iress had risen 10.8 per cent since the start of 2023, relative to a performance of 3.5 per cent by the ASX 200.

Price also stated the firm saw “significant opportunities” to grow and expand its presence in the Australian wealth management space as well as demand for superannuation software.

“Our analysis has confirmed that our core Australian franchises are incredibly strong with opportunities abounding in the industries we serve here: wealth management, trading and market data and superannuation. We see significant opportunities to grow and expand leading positions in Australian wealth management, and trading and market data with strong and growing demand for superannuation software, as the industry transitions to automated administration models.

“Our immediate focus will be on developing the next generation of wealth capabilities to meet the growing demand for advice while exploring opportunities in data and AI and enhancing our connectivity capabilities in wealth and trading.”

Earlier this year, the firm announced a 10 per cent reduction in headcount towards reducing costs and a new organisational structure. 

Effective 1 July 2023, Iress’ leadership team would include Harry Mitchell as CEO of wealth management, Jason Hoang as CEO of trading and market data, Paul Giles as CEO of superannuation, and John Harris as CEO of managed portfolio. 

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

 
sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

 

MARKET INSIGHTS

JOHN GILLIES

tHOSE 989 WHO ARE CEASED WILL GO ON TO LIVE A LONG AND HEALTHY LIFE JG...

4 hours ago
Chris Cornish

What a sticth-up. Looks like Labor Senator Jess Walsh follows Stephen Jones who follows what the industry super funds ...

1 hour ago
Peter Swan

This report is a blatant display of far-left factional partisanship, treating superannuation funds as state property and...

1 hour 52 minutes ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

2 weeks 1 day ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

1 week 1 day ago

The corporate regulator has made a suspension and a cancellation of the AFSL of two Queensland-based firms. ...

1 week 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND